So what does it take to find a good foreclosed property with potential to make money? Well, I can answer that. 

A lot of research must be done about the area:

    - How fast the area is developing

    - What is the average property sale time in the area

    - Is there new construction?

    - Schools, parks, shopping

    - Mobility (are there most major express ways close by)

 

If you are going to buy this property through a Realtor it is essential to know how much you will be charged for selling the home.

 

If you are going to fix up the property it is essential to have everything on paper as far as costs go.

 

Otherwise, the whole other process is like buying a regular property.

 

I recommend to work with a Realtor for few properties (if not all). Yes, the costs would be less if a Realtor was out of the picture but their expertise are very important if deciding to invest in foreclosed properties.

 

I myself have started investing in foreclosures. Even though my passion are mortgages I am starting to make a lot more money in foreclosed homes investing.

 

If anyone is interested in learning more e-mail me. I would gladly pass on my knowledge as this is a market that can never be completely capitalized.  

 
Posted by Marko Nedeljkovic on 01/25/2007 05:20 PM   Comments (3)  
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3 Comments on Foreclosure Investing:

DEC
26
2007
128,242 Points Outside Blog

Hi Marko,

The investor should always consult with their Realtor, 1031 exchange Qualified Intermediary, and other advisors as well if the acquisition will be part of a 1031 exchange transaction.  Acquiring a foreclosure property as part of a 1031 exchange can present operational challenges that need to be discussed prior to the completion of the acquisition.
3:09pm • #1

I am glad to see that you ventured out into investing.

Regarding realtors, I have difficulty finding one that remains focused in my market. I have a minimum profit that I insist upon of 25% of the ARV or $20,000 and I include a buyout clause of $500 if I sell the property first.

Unfortunately, there are a lot of newbies investors that pay more than they should and take less profit.

That is why I am focused on the preforeclosure market and short sales, because I am not rehabbing a house only to net $12,000. It is too much work.  

 
James B
7:16pm • #2

I am glad to see that you ventured out into investing.

Regarding realtors, I have difficulty finding one that remains focused in my market. I have a minimum profit that I insist upon of 25% of the ARV or $20,000 and I include a buyout clause of $500 if I sell the property first.

Unfortunately, there are a lot of newbies investors that pay more than they should and take less profit.

That is why I am focused on the preforeclosure market and short sales, because I am not rehabbing a house only to net $12,000. It is too much work.  

 
James B
7:17pm • #3


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